https://www.taxtmi.com/caselaws?id=290044 Profession tax paid under Section 111 of the Madras City Municipal Act, 1919 was held not to be deductible as expenditure laid out solely for the purposes of the profession under Section 11 of the Income Tax Act, 1922. The Court reasoned that the levy was in substance a charge on income, not an outgoing incurred to earn that income, and that its statutory description as a payment by way of licence fee did not change its real character. Only disbursements directly made to earn profits qualify for deduction; amounts merely connected with carrying on a profession do not. The reference was answered against the assessee. en-us Thu, 29 Oct 1925 00:00:00 +0530 Sat, 05 Sep 2020 18:15:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290044 Profession tax paid under Section 111 of the Madras City Municipal Act, 1919 was held not to be deductible as expenditure laid out solely for the purposes of the profession under Section 11 of the Income Tax Act, 1922. The Court reasoned that the levy was in substance a charge on income, not an outgoing incurred to earn that income, and that its statutory description as a payment by way of licence fee did not change its real character. Only disbursements directly made to earn profits qualify for deduction; amounts merely connected with carrying on a profession do not. The reference was answered against the assessee. Case-Laws Income Tax Thu, 29 Oct 1925 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290044